SBA 7(a) Q&A
Short answer
A professional business valuation is critical for an acquisition as it justifies the purchase price and ensures fair market value.
For business acquisitions, the SBA requires a qualified, independent valuation for loans exceeding certain thresholds (e.g., over $250,000 for goodwill). This valuation ensures the purchase price is reasonable and does not overstate the business's worth.
If you're buying a business for $1,200,000, a professional valuation will assess its assets, cash flow, and market position, confirming that the $1,200,000 purchase price is justified.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 - Lender and Development Company Loan Programs
Last checked 2026-06-13. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-13 · SBA sources checked through 2026-06-13. DealRoom analysis of public SBA 7(a) lending records (FY2020–present). Grounded in the current SBA rulebook; verify against the official sources above before relying on it for a live deal. Not legal, tax, or financial advice, and not an approval decision.
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